Can Foreclosure Mediation in Maryland Save My Home?
You’re behind on your mortgage and unable to catch up. Despite your best efforts, you have not made any headway with your lender. You desperately want to save your home from foreclosure. You keep receiving large packets of mail. One says “Pre-File Mediation” or maybe you have already been served with an Order to Docket Foreclosure. One day you receive a document called a “Final Loss Mitigation Affidavit” which includes a “Foreclosure Mediation” form. But what is foreclosure mediation in Maryland?
Foreclosure mediation in Maryland is a process where you can sit down with your lender and a neutral third party to determine if you have any options to save your home from foreclosure. These options are called “loss mitigation options” and they can include the following: Loan Modification, Deed-in-Lieu of Foreclosure, and Short Sale.
In Maryland, your lender must offer you the option of mediation during the foreclosure process. It is typically offered well into the foreclosure process after the Order to Docket Foreclosure has been filed with the court.
There are strict timelines to request mediation so you have to take action immediately or you will lose this opportunity. To learn how foreclosure mediation in Maryland can help save your home from foreclosure, keep reading!
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What is Foreclosure Mediation in Maryland?
Foreclosure Mediation in Maryland is your last chance to sit down with your lender and negotiate a mutually acceptable solution to avoid foreclosure and explore any loss mitigation options.
During mediation, you will have the opportunity to explain your financial situation, propose a modified payment plan, and possibly negotiate a loan modification.
Foreclosure Mediation can help to stop the foreclosure process and find a solution that works for both you and your lender. It is important to act quickly and request mediation as soon as possible to maximize your chances of success.
If you miss this opportunity, the foreclosure process will move forward.
The Foreclosure Process, at a Glimpse
Foreclosure does not happen overnight. Your lender must follow a process in Maryland before they can foreclose on your home which includes sending you specific documentation in a particular order:
- Notice of Intent to Foreclosure
- Order to Docket Foreclosure (which includes either a Preliminary or Final Loss Mitigation Affidavit)
- Foreclosure Mediation in Maryland
- Notice of Impending Foreclosure Sale
The notice of Impending Foreclosure Sale is the last stop in the foreclosure process. So foreclosure mediation in Maryland is the last opportunity to sit down with your lender and save your home before your home is foreclosed on and auctioned off to the highest bidder.
Pre-File Mediation
In some cases, your lender may offer you a pre-file mediation before filing the Order to Docket Foreclosure with the court. If you receive a pre-file mediation offer, you only have 25 days to request foreclosure mediation in Maryland with the Office of Administrative Hearings (OAH) in Hunt Valley, Maryland.
If you choose pre-file mediation, you will likely not be able to have a second, post-file mediation with your lender.
If pre-file mediation does not result in an agreement, your lender will file an Order to Docket Foreclosure as soon as 45 days after the pre-file mediation was mailed.
Post-File Mediation
In the majority of cases, however, when you receive a Final Loss Mitigation Affidavit, you will also receive a “Request for Foreclosure Mediation” form which looks like this:
This form is the first step to requesting foreclosure mediation in Maryland.
In order for your application to be successful, it must be properly filled out and mailed with a $50.00 check to the OAH.
Once the OAH receives the completed request, your lender must schedule the mediation within 60 days.
After you receive the Final Loss Mitigation Affidavit, you only have 25 days to request mediation.
What Do I Need to Request Mediation?
In order to have a successful foreclosure mediation in Maryland, there are many documents you must submit to the OAH. Some of these documents include:
- Federal income tax returns;
- Proof of property tax payment;
- Any previous loan modifications or other agreements with your mortgage company (if applicable);
- The most recent statement for any other loan you may have on your property (such as a home equity loan or second mortgage);
- Proof of your pay (paystub or benefits statements);
- Your two most recent bank statements;
- A completed Borrower(s) Information Worksheet.
Why Should I Request Foreclosure Mediation in Maryland?
Foreclosure mediation in Maryland is your last opportunity to explore loss mitigation options.
If you miss this opportunity, you will not get another one, and declaring chapter 13 or chapter 11 bankruptcy will likely be your best chance to save your home, short of reinstating your loan.
Foreclosure mediation in Maryland does not mean that your lender must agree to a loss mitigation option. However, it can give you a chance to stop foreclosure and possibly obtain a loan modification.
Steiner Law Group Can Help
Getting a loan modification may be your best chance of saving your home, short of filing for bankruptcy. But the loan modification process is complicated and difficult to do on your own. An experienced loan modification and bankruptcy attorney like Steiner Law Group can ensure you have the best chance to save your home.
Steiner Law Group is an experienced Maryland loan modification and bankruptcy law firm. We know all of the ins and outs of the foreclosure process. We can ensure you have the best chance of getting a loan modification-and, if all else fails, the “automatic stay” offered in chapter 13 and chapter 11 bankruptcy will stop a foreclosure cold.
Steiner Law Group will guide and support you through this difficult time in your life.
If you have questions about foreclosure mediation in Maryland or the foreclosure process in general, contact Steiner Law Group today for a free consultation or call us at (410) 670-7060.